The U.S. Department of Defense is investing billions to build a domestic rare earth magnet supply chain.

The U.S. Department of Defense will invest billions in rare earth magnet production

The U.S. Department of Defense has signed a strategic agreement with the domestic company MP Materials, planning to invest billions of dollars to expand the capacity of rare earth magnets. This material is crucial for the defense industry and high-tech fields.

According to the company, the agreement includes building a full-process factory, achieving a complete domestic production chain from raw material processing to finished magnets. The Department of Defense will become the largest shareholder of MP Materials, holding 15% of the shares.

The new production base, named "10 X Facility," is planned to start operation in 2028. After reaching full capacity, the company's annual capacity for rare earth magnets will be increased to 10,000 tons.

At the same time, MP Materials Company also plans to expand the heavy rare earth element processing business at the Mountain Pass Rare Earth Mine in California - this mining area currently has the capability for rare earth mining and primary processing.

The company's CEO James Litinsky said: "This plan is a key measure of the Trump administration to accelerate the realization of independent U.S. rare earth supply chain."

Original: https://www.toutiao.com/article/1837289188151303/

Statement: This article represents the views of the author himself.